CUSTOMERS of collapsed furniture giant Courts who paid a cash deposit on items yet to be delivered may have lost their money, it has emerged.

The firm's seven stores across Hampshire and the Isle of Wight are currently closed for stocktaking but were expected to re-open this morning.

Courts collapsed this week under the weight of £280m debts and went into administration.

It adds up to an uncertain future for scores of Hampshire staff of the 154-year-old furniture company.

Numerous bidders are circling over the firm and administrators KPMG plan to sell the business as a going concern but in what form is still unclear.

A spokesman for KPMG said: "It is too early to talk about the prospects of employees.

"We are looking to sell the business as a going concern and if we do that there's a greater chance of people keeping their jobs. But, it is early days."

While customers who handed over cash deposits may have lost their money, those who paid by credit card should be covered by their card provider, she said.

The administrators have pledged to write to people who have put deposits down on goods and set up a telephone helpline for customers worried about their orders.

Mick McLoughlin, head of KPMG corporate recovery and joint administrator, blamed fierce competition for the group's downfall. He said: "Courts has suffered from an increasingly competitive UK marketplace and tight margins."

Courts was set up by Henry Court in 1850, initially mending kettles and pans.

The store moved into bicycles, paints and furniture in 1863 when Henry died and William, his 11-year-old son, took over. The Cohen family bought the Canterbury store in 1946 and expanded it into a 352-site chain. But the lengthy history turned into an astonishingly rapid decline for the group - famously advertised by comedian Bruce Forsyth with the catchline "I'll see you in Courts".

Courts has stores in Southampton, Fareham, Gosport, Andover, Waterlooville, Farnborough and Newport on the Isle of Wight.

The customer and shareholder helpline number is 0870 950 1333.